Free Template for Profit Margin Calculator by StaffAny
Download this restaurant profit margin calculator template and take control of your business!
How Can Our Template Help You?
- Quickly see where your restaurant stands on profitability.
- Identify areas for improvement to increase margins.
- Fully customisable to meet the needs of your restaurant.
Do you find it useful? Share it with others and let them know how you calculate profit margin in your restaurant.
Facebook
Twitter
LinkedIn
Did you know?
StaffAny has helped companies across multiple countries in several other ways.
Cost Optimization
Up to $24K annual labor cost savings
Time Savings
50% faster timesheet consolidation
Punctuality
30-40% decrease in staff lateness
For Owner/ HRs Who Want Better Cost Control
Our labor cost calculator automatically updates you on weekly labor costs based on your schedule. Take control of your labor costs to optimize and achieve your target manpower budget. Lower your operating cost to increase your take-home profits. Save as much as up to $24K annually.
Time Tracking Made Easy
Modern Time and Attendance software with features that empowers you with real-time visibility and decision-making abilities, resulting in efficiency, cost savings and faster timesheet consolidation, as much as 50% faster.
More Punctuality, Increasing Efficiency and Better Control
Our time clock sidekick automates rounding, early clock-in prevention, late and overtime prevention, and auto clock-out to help control your budgeted costs. Decreases staff lateness by 30%-50%.
Frequently Asked Questions
Restaurant profit margin is the percentage of each sales dollar that counts as profit. Every time you make a sale, you have to deduct the expenses from the sale. The amount left after deducting the costs is the profit.
Calculating a restaurant’s profit margin requires two figures: gross sales and expenses. Gross sales are the income from selling goods or services. Total expenses include the cost of goods sold (COGS) plus all the other costs of running the business, such as operating costs, salaries and taxes.
This varies from restaurant to restaurant. However, the average profit margin for full-service restaurants is 3% to 5%. For quick service restaurants and food trucks, operating costs are low, so profit margins are much higher, around 6 to 9%.
There are many reasons for low margins in the hospitality industry, but these major expenses often affect the profit margin: Cost of Goods Sold (COGS), labor and overheads.
A good profit margin in food service can be in the range of 5 to 15 per cent, as restaurants operate on a lower margin than most other businesses.
The difference between FOH (front of house)/BOH (back of house) is one of appearance and presentability. The “FOH” is any action or area of your restaurant that customers will interact with during their dining experience. The “BOH” is any action or area of your restaurant that customers will not interact with (or even necessarily see) during their dining experience. Both should be part of your profit margin calculation.
